MEF calls for study before mandatory RM2,500 graduate salary

Datuk Syed Hussain Syed Husman, president of the Malaysian Employers Federation (MEF), has urged a comprehensive study before the government implements a mandatory minimum starting salary for graduates. The proposed salary of RM2,500 per graduate, as part of the National Wages Consultative Council Act amendment, could potentially be a one-size-fits-all solution that may not suit various industries.

Syed Hussain emphasized that salary requirements differ across industries based on the skills and knowledge necessary for different professions, stating that a standardized recommendation could be risky and not applicable. He also highlighted that employers consider factors beyond academic qualifications, such as communication, teamwork, presentation, and analytical skills while hiring candidates.

Syed Hussain expressed concern over the execution of the implementation, as businesses are already grappling with supply chain disruptions, geopolitical tensions, rising costs, margin compression, higher interest rates, higher statutory deductions, and delayed payments. He noted that the recent minimum wage increase is already about 18 percent higher, and many employers are struggling with the current RM1,700 rate before it rises to RM2,000.

Syed Hussain stressed the importance of timing the implementation properly, emphasizing the need for a phased approach rather than hurriedly ticking agenda items. He reiterated MEF's openness to collective discussions to address industrial harmony and acceptance by all stakeholders.